Saipem is a company specialized in engineering services and construction in the oil and gas. Its main activities are construction and offshore and onshore drilling services. The company installs sub-sea pipelines, installs fixed platforms, manages complete onshore construction projects, and drills for oil mainly in Italy, Algeria, Nigeria and the Arabian Peninsula. Its main shareholder is ENI, which holds nearly 43% of capital.

Saipem is among the brightest company in Italian stock exchange, it shows a strong financial health with robust growth concerning revenue and net income. First quarter’s earnings releases showed revenue up 6% above than €3 billion and an EBITDA up nearly 10% to €544 million. At current price the share is trading 14 times earnings per share estimates for full year, according to Thomson Reuters’ consensus.

On the stock exchange the performance is impressive. Since December 2008 to 2012 peak, the share recorded +300%. In the past weeks, the weakness on the oil prices and the return of sovereign debt's fear, the share has suffered such as all Italian stocks. However this level could give a good point of entry for investors, in order to aim a return in the area of EUR 36. Even if moving averages are in bearish trend, especially the 20 days, we forecast a bullish trend’s recovery, betting on the strong financial health. We suggest a stop loss at EUR 29.8.